A big reason why technology-heavy Nasdaq Composite
is dropping 1.5% in afternoon trading Thursday while the Dow Jones Industrial Average
is rallying 292 points, or 0.9%, is the bad performance of the shares of the four biggest tech names. Of the four U.S. companies with market capitalizations of over $1 trillion, shares of Apple Inc.
dropped 3.1%, Microsoft Corp.
slid 1.9%, Alphabet Inc.
sank 2.9% and Amazon.com Inc.
slid 4.1%. Based on the number of shares outstanding provided in the companies’ latest quarterly filings, the stock price declines are wiping out a total of about $191.3 billion in market capitalization. Keep in mind that the Nasdaq is a market-cap weighted index and the Dow is a price-weighted index. Of the Big 4 tech companies, only Apple and Microsoft are in the Dow. Microsoft’s stock is the 6th highest-priced Dow stock and Apple’s stock is 15th. Together, those stocks’ price drops are shaving about 60 points off the Dow’s price.
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